Bitcoin News Today: Bitcoin Falls Below $115K Amid Retail Sell-Off and Institutional Buying Divergence

Bitcoin’s price has stabilized after a sharp sell-off driven by profit-taking and short-term holders offloading their positions. Over the past 24 hours, more than 21,400 BTC were sent to exchanges at a loss, indicating a retail capitulation event [1]. This behavior is typical during periods of high volatility, where traders panic-sell as prices drop. On-chain data from CryptoQuant shows these losses created significant selling pressure, further contributing to Bitcoin’s breakdown below key support levels.

The price has now dropped below $115,724, a critical level that had acted as a consolidation range for several weeks. Bitcoin currently hovers around $113,737, with the next immediate support at $112,700. This level is historically significant, aligning with the previous all-time high set in May 2025. Analysts are closely watching whether this area can attract strong demand to halt the downward momentum [1].

The move below $115K has shifted market sentiment from cautious optimism to bearish uncertainty. The breakdown has pushed Bitcoin below the 50 and 100-period simple moving averages (SMAs), now acting as resistance at $117,853 and $114,838, respectively. The 200-period SMA, currently at $110,308, is seen as a critical level that could determine whether a short-term rebound occurs or the price continues to correct [1].

Despite the short-term bearish trend, on-chain data suggests institutional investors are taking advantage of the dip. The supply of Bitcoin in Over-The-Counter (OTC) desks continues to decline, signaling that large players are accumulating during the correction. This divergence between retail selling and institutional buying is viewed as a sign of a healthy market reset, where weaker positions exit while stronger ones are built [1].

The broader market is watching for signs of renewed bullish momentum. Unless Bitcoin regains strength and breaks back above $120,000, it may continue to consolidate or even slip toward the $110,000 zone [2]. A recent $9.6 billion OTC sell-off in early August initially triggered a price correction, but Bitcoin has since stabilized near $119,000 amid consolidation [3].

Analysts remain divided on Bitcoin’s next move. Some predict a potential bounce back to retest the $115K region if the $112K level holds, while others caution further downside could be imminent if demand fails to materialize. The coming sessions will be crucial in determining the direction of the price. For now, the market is waiting for either institutional demand or fresh capital inflows to absorb the retail-driven sell-off and stabilize the price [1].

Source:

[1] Short-Term Holders Sell Bitcoin At A Loss (https://www.mitrade.com/au/insights/news/live-news/article-3-1007424-20250802)

[2] Bitcoin price: World's top cryptocurrency tanks and these ... (https://m.economictimes.com/news/international/us/bitcoin-price-worlds-top-cryptocurrency-tanks-and-these-could-be-the-reasons/articleshow/123041828.cms)

[3] Bitcoin Slides 2.4% Amid Large Sell-Off and Consolidation ... (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-slides-2-4-large-sell-consolidation-pressure-2508/)